Politics & Government

Malik's Bill to Repeal Sales Tax Morphs Into Study Commission

Barrington Rep. Jan Malik's legislation to repeal sales tax turns into study commission.

The General Assembly passed legislation before it adjourned late Wednesday, July 3, that will establish a commission to study the Rhode Island sales tax – perhaps even to repeal it. It was kick-started by a Barrington legislator.           

If enacted, the 13-member commission would be expected to report its findings and recommendations to the General Assembly by Feb. 6 next year.

The joint resolution in the House, 2013-H 5365B, was introduced by Rep. Jan P. Malik (D-Dist. 67, Barrington, Warren). A similar resolution in the Senate, 2013-S 0246A, wa sponsored by Sen. Roger A. Picard (D-Dist. 20, Woonsocket, Cumberland).

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As proposed in the resolution, the 13-member study commission would include three members each from the House and Senate; the director of the Department of Revenue; the executive director of the Rhode Island Public Expenditure Council (RIPEC); the president of the Greater Providence Chamber of Commerce; one member of the business community; one taxpayer representative; the president of the Rhode Island Hospitality Association, and the president of the Rhode Island League of Cities and Towns.

The official charge of the commission is to “make a comprehensive study of all aspects of the current system pertaining to sales tax in the State of Rhode Island, including, but not limited to, the possibility of repealing the sales tax.”

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The resolution creating the study commission grew out of legislation introduced by Malik that called for the elimination of the sales tax. Although the legislation received some support when it was heard in committee, there was also significant opposition -- primarily because of concerns that eliminating the sales tax would leave a hole in state revenue collections that would be difficult, if not impossible, to plug. 

 “I believe a study is a worthwhile expenditure of time that will help us arrive at recommendations and actions that will benefit consumers and businesses alike,” said Malik. “I look forward to getting a serious conversation started on a subject we have talked about for years.” 


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